News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Mixed
Wall Street
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
GBP/USD
Bullish
USD/JPY
Bullish
More View more
Real Time News
  • Forex Update: As of 16:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: 0.31% 🇬🇧GBP: 0.24% 🇯🇵JPY: 0.24% 🇳🇿NZD: 0.07% 🇨🇦CAD: 0.06% 🇨🇭CHF: -0.14% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/rBmlc0ErCB
  • Fed's Brainard: -April jobs data was a reminder that the recovery will be uneven, hard to predict -Strong rebound in hiring still likely -Fed policy driven by economy's actual performance is right strategy -Temporary jump in inflation unlikely to undo longer trends
  • Fed's Brainard: -Inflation tough to predict, may be transitory -Important to stay patiently focused on reaching goals -Data shows price expectations well anchored at 2% -Fed has tools and will react if inflation accelerates too much -Supply/Demand bottlenecks add to uncertainty
  • Indices Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.23% FTSE 100: 0.20% France 40: 0.18% US 500: -0.95% Wall Street: -1.32% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/0hpabRfty5
  • Heads Up:🇺🇸 Fed Brainard Speech due at 16:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-05-11
  • RT @carlquintanilla: * WHITE HOUSE TO ANNOUNCE NEW PARTNERSHIP WITH RIDE SHARING COMPANIES $UBER, $LYFT TO MAKE ALL RIDES TO AND FROM VACCI…
  • The Nasdaq 100 to Dow ratio took another serious hit this morning to readily clear the floor of its 10 months of congestion. Where is Hans Gruber when you need him? https://t.co/kwGiIMgFM8
  • Lumber futures pacing back-to-back declines for the first time since mid-March. Read up on the lumber market here: https://www.dailyfx.com/forex/fundamental/article/weekly_spotlight/2021/05/07/will-lumber-prices-prick-us-housing-bubble-or-will-low-rates-prevail.html $LB $LBS #Commodities https://t.co/O4zA7u5yaH
  • Forex Update: As of 14:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: 0.30% 🇯🇵JPY: 0.26% 🇬🇧GBP: 0.21% 🇳🇿NZD: -0.01% 🇨🇦CAD: -0.02% 🇨🇭CHF: -0.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/Q57TKC4p2W
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: US 500: -1.67% Wall Street: -1.78% France 40: -2.34% Germany 30: -2.38% FTSE 100: -2.78% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/qXVjzv7tfg
Gold Carves Weekly Outside Reversal Post FOMC

Gold Carves Weekly Outside Reversal Post FOMC

Michael Boutros, Strategist
Gold Carves Weekly Outside Reversal Post FOMC

Fundamental Forecast for Gold:Bullish

Gold prices are sharply higher this week with the precious metal advancing 2.14% to trade at 1183 ahead of the New York close on Friday. The advance comes on the back of the FOMC policy meeting where Yellen and company talked down expectations for a mid-2015 rate hike with the central bank lowering expectations for growth and inflation. The release prompted a massive bout of profit taking on the greenback with the Dow Jones FXCM U.S. Dollar Index (Ticker: USDOLLAR) marking its single largest weekly decline since August of 2013 as Gold rebounded off a critical weekly support range.

Even though the FOMC removed the ‘patience’ language from the forward-guidance, the updated projections coming out of the central bank dragged on the dollar as Fed officials pushed back their interest rate forecast. Indeed, the downward shift in the interest rate dot-plot raises the risk of seeing the Fed retain the zero-interest rate policy (ZIRP) into the second-half of the year, with the normalization cycle likely be on a more gradual trajectory. Accordingly, the USD may get a brief respite from its recent rally with gold set to stage a near-term recovery amid softer interest rate expectations and a subdued outlook for inflation.

Looking into next week, traders will be closely eyeing key US data points with the Consumer Price Index (CPI), Durable Goods Orders & the final read on the 4Q Gross Domestic Product (GDP) report on tap. Despite the cautions tone laid out by Chair Yellen, stickiness in the core rate of inflation along with an upward rising in the growth rate may cap dollar-losses in the days ahead as market participants now anticipate the central bank to take a softer approach in the normalization cycle.

From a technical standpoint, gold has now rebounded off the key support region we’ve been noting over the past few weeks at 1150/51. Price action this week completes a sizeable key outside reversal candle off of a critical support region with the rally taking prices briefly through the 23.6% retracement of the decline off the January highs at 1181 before settling just below. Look for near-term support at 1167/68 which is defined by the March 18th reversal-day close & the January stretch low.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES